The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms. The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Beer market of Kazakhstan acquired both traits of East European countries and South Eastern Asia taking a transitional position between them by many criteria and consumption style. Yet there is a positive trend in beer production which differs Kazakhstan from most of the neighboring countries. The market has remained consolidated in the hands of two international players because of its small size. However, it faces dynamic processes such as fast growth of draft beer sales, up and downs of regional companies and Carlsberg Group’s ultimate expansion. Excessive mainstream segment has declined over the recent years, yet, Zhigulevskoe and national brands with regional links have yielded their positions to a range of new products. In our review special attention was paid to regional analysis of the markets. In 14 regions of Kazakhstan we compared the companies’ positions, the market price segmentation and DIOT channel development. Besides we have compared the beer market of Kazakhstan to neighboring countries. ...
India. Karnataka orders recovery of tax dues from UBL
The exact amount of entry tax that can be recovered from UBL is still being calculated by the department, according to which the company has not paid entry tax on movement of malted barley/barley malt into its brewery on the outskirts of Bengaluru. The firm has not paid entry tax dues from 2007 to 2009, sources told FE.
Vijay Mallya as the chairman of United Breweries holds 35.8% stake in the company (as on March 31, 2015), while Dutch brewer Heineken holds 42.4%. Mallya left India early this month as banks sought a court order to confiscate his passport and arrest him for not paying their dues.
The company instead contested the department’s claim in the Karnataka Appellate Tribunal and got a relief stating that malted barley is an agricultural produce and is not liable for any tax. Subsequently, the department had moved the High Court in 2011. The divisional bench of the Karnataka High Court, in its order in September 2015, upheld the department’s claim of levying entry tax on malted barley/barley malt under the provisions of Karnataka Tax on Entry of Goods Act, 1979.
“The notification (No. FD 11 CET 2002(1) dated March 30, 2002) provides for levy of entry tax in respect of raw materials and inputs, which are used in the manufacture of tobacco products and liquor. Hence, arecanut, tobacco and any other agricultural produce brought into the local area for the manufacture of liquor and tobacco products such as beer, cigarettes, cigar, gutka, churuts, zarda and quimam pan masala or any other products which can be classified as liquor or tobacco products are liable for entry tax,” a circular issued by Commissioner of Commercial Taxes said.
In the circular issued recently, Ritvik Pandey, Commissioner of Commercial Taxes has instructed the department officials to impose 1% entry tax on raw materials brought into the local area for manufacture of liquor by the company.
Despite repeated attempts, the management of UBL was not available for a comment.
“All the assessments/re-assessments concluded by the assessing authorities allowing exemptions as agricultural or horticultural produce are to be reopened and reassessed in the light of the order of the division bench of the High Court of Karnataka under the provisions of the Act,” Pandey said in his circular.
The commissioner has also instructed the department officials to take up all the cases of the respondents (United Breweries) for the previous years wherever exemptions are allowed for reassessment on priority and levy the penalty and interest as existed at that point of time for the relevant years of assessment or reassessment.
The enforcement authorities have been directed to take immediate action to cull out information and take up inspection and conclude the proceedings as early as possible and send the reports to the concerned offices to take up assessment proceedings against the company.
“Even though barley is an agricultural produce, it is liable for levy of entry tax when used in the manufacture of liquor at the rate of 1% as per the notification issued by the government on March 30, 2002.
The department is right in ordering for the payment of tax arrears from the defaulting companies,” said B T Manohar, chairman, state taxes committee, Federation of Karnataka Chambers of Commerce and Industry (FKCCI).
24 Мар. 2016